1.Suppose that over a seven-year period, $1000 accumulated to $1918 in an investment certificate in which interest was compounded quarterly. Find the nominal rate ofinterest, compoundedquarterly, that was earned.

The nominal rate was =(. )%.

(Type a n integer or decimal rounded to two decimal places asneeded.)

2.Azero-coupon bond is a bond that is sold for less than its face value(that is, it isdiscounted) and has no periodic interest payments.Instead, the bond is redeemed for its face value at maturity.Thus, in thissense, interest is paid at maturity. Suppose that azero-coupon bond sells for $9,450 and can be redeemed in20-years for its face value of $43,000. What is the annual compound rate ofreturn?

Annual compound rate= (. )%

(Round to two decimal places asneeded.)

3.On July1, 2001, a savings account has$1000. This account earns interest at an annual rate of 1.5% compounded continuously. A competing bank is attempting to attract new customers by offering to add $25 immediately to any new account opened with a minimum$1000 deposit, and the new account would earn interest at the annual rate of 1.5% compounded semiannually. To choose one of the following three options on July1, 2001, find the accumulated amount on July1, 2001, for each option in parts(a) through(c) below.

(a) Leave the money at the first bank.

The accumulated amount is $=

.

(Do not round until the final answer. Then round to the nearest cent asneeded.)

4.If you buy a computer directly from the manufacturer for $3,377 and agree to repay it in 36 equal installments at 1.86% interest per month on the unpaidbalance, how much are your monthlypayments?

Your monthly payment is $=

. (Round to two decimal places asneeded.)